Metal components manufacturer Precision Castparts Corp. (PCP) Friday said it has acquired 49% equity stake in Yangzhou Chengde Steel Tube Co., Ltd., a manufacturer of carbon steels and alloy steel seamless steel tubes. Precision expects the cash acquisition to be accretive to earnings immediately.
Portland, Oregon-based Precision stated that, under the equity method of accounting, it will report its share of Yangzhou's income on an Equity in Earnings of Unconsolidated Affiliates line in its income statement. Precision noted that other financial terms of the transaction were undisclosed.
Precision said it lacked manufacturing capacity for seamless boiler pipe, and it has been forced to walk away from the market. Precision sees to gain immediate access to boiler pipe market in China through Yangzhou, and intends to use Wyman-Gordon's distribution capabilities to pull their products around the world.
Yangzhou manufactures seamless, extruded pipe for boiler applications in coal-fired power plants, as well as pipe and tubing for other energy-related applications, such as compressed natural gas. Yangzhou operates from one facility with a manufacturing footprint of approximately 6 million square feet in Jiangsu Province of China.
Commenting on the acquisition, Precision's Chairman and Chief Executive Officer Mark Donegan said, "The strategic fit of the two companies will provide a long runway for continued earnings growth in PCC's power generation business."
PCP is currently trading on the New York Stock Exchange at $115.14 per share down $0.20 or 0.17% on a volume of 185,786 shares. In the past 52-week period, the shares have been trading in a range of $47.71 to $118.62.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.